Ryanair yesterday announced record profits despite high fuel costs and renewed its attacks on chancellor Gordon Brown's increase in departure tax.

The Dublin-based budget airline said third-quarter net profit had climbed to €48m (£31.7m), a rise of 30% on the same period last year and well ahead of analysts' expectations. The company also forecast a strong rise in full-year earnings, changing its guidance from a 16% rise to a 29% increase to €390m."This exceptional 30% increase in Q3 profits during a period of higher oil prices, intense competition and 21% seat capacity growth demonstrates, yet again, the robustness of Ryanair's lowest-fare model," said the airline's chief executive, Michael O'Leary.

Ryanair said revenues rose by a third to €493m, driven by a 19% growth in traffic as passenger numbers topped 10 million and a 7% increase in average fares, pushed higher by charging passengers for checked-in luggage.

The airline said its baggage charges were, as intended, cutting the number of passengers checking in luggage. Though that would cut revenues, it would also mean lower baggage-handling charges for the airline.

Fuel costs rose 52% to €175m but the airline said that it had taken advantage of the recent weakness of the oil price to hedge much of its fuel requirements for the next financial year, which it said would mean a saving of €60m.

Sales of inflight services and revenues from customers booking car hire through the airline rose 61% over the period, though Ryanair said the total was boosted by a one-off payment arising from early contract termination by its hotel partner.

"The numbers out today are very strong," said John Sheehan, an analyst at NCB Stockbrokers. "There are some cost pressures which continue to be in the business but they've more than been offset by rising yields."

Ryanair is continuing to expand. It will be operating 134 aircraft at the end of March and has another 117 aircraft on order for delivery over the next five years. Mr O'Leary has been robust in his response to campaigners who have attacked the airline industry for contributing to climate change.

Yesterday Mr O'Leary was again on the offensive. "The recent hysteria in the UK about the impact of aviation on climate change has been misguided and misplaced. Aviation accounts for less than 1.6% of greenhouse gas emissions and we expect, in time, that the media and governments will focus on the causes of 98% of greenhouse gas emissions and not the aviation industry."

Mr O'Leary denounced the increase in UK departure tax from £5 to £10 as "another tax on tourists". "The fact that it represents a 35% rate of tax on Ryanair's average fare of £28 shows how regressive, unfair and penal it is."

Mr O'Leary made it clear that Ryanair has not given up on its ambitions to acquire Aer Lingus, where it has built a stake of just over 25% at a cost of €342m. The European commission is reviewing the implications of a Ryanair takeover of its rival. Yesterday Mr O'Leary said: "At a time when the European Union is encouraging airlines to consolidate, we remain confident that our offer for Aer Lingus will obtain EU commission approval following this phase two review."

As Ryanair was unveiling its better-than-expected performance British Airways revealed that traffic in January had fallen by 2.8% as the airline felt the impact of threatened industrial action by cabin staff. Some 1,300 flights were cancelled and BA has already put the cost of the dispute at £80m.

Just the ticket

42m: The number of passengers Ryanair expects to carry this financial year

£7: The amount the airline charges for checking in a bag at the airport